Chase Company's new product is expected to have a sales price of $16 and variable unit price of $8.Fixed costs are expected to be $560,000.What is the break-even point in units?
A)56,000
B)70,000
C)37,333
D)80,000

Question

Quizplus · Accepted Answer

The break-even point in units can be calculated using the formula: Break-even point in units = Fixed Costs / (Sales price per unit - Variable cost per unit). Plugging in the given values: $560,000 / ($16 - $8) = $560,000 / $8 = 70,000 units.

Chase Company's New Product Is Expected to Have a Sales